Axis REIT 4Q realised net income falls 10% to RM19.3m, full year DPU at 19.75 sen

KUALA LUMPUR (Jan 19): Axis Real Estate Investment Trust’s (Axis REIT) realised net income fell 9.9% year-on-year to RM19.33 million in the fourth quarter ended Dec 31, 2014 (4QFY14), from RM21.45 million in the previous corresponding quarter.

Realised rental revenue slipped 4.5% to RM34.37 million, from RM36.01 million previously.

The REIT (fundamental: 1.3; valuation: 0.5) has declared a distribution per unit (DPU) of 4.15 sen for 4QFY14, down 11.7% from 4.7 sen previously. This translates to a full year DPU of 19.75 sen for FY14, an increase of 6.8% from 18.5 sen paid out for FY13.

The full year DPU represents a yield of 5.6%, based on the REIT’s closing price of RM3.52 today.

For the full-year of 2014, Axis REIT’s realised net income slid to RM81.29 million, versus RM84.53 million in the previous financial year; while realised rental revenue declined 2.6% to RM137.63 million, from RM141.31 million a year ago.

Nevertheless, overall net profit for FY14 came in at RM110.46 million, a marginal decline from RM111.28 million a year ago.

On prospects, the manager of Axis REIT said it will be able to maintain its current performance for the coming financial year ending Dec 31, 2015, given its current “satisfactory” performance and growth strategy.

In a separate announcement, Axis REIT proposed a second issuance of 236,000 new units as payment of management fee, at an issue price of RM3.61 per unit. The proposed second issuance would increase Axis REIT’s issued fund size to 547.75 million units, from 547.52 million units. It will also reduce the REIT’s maximum number of units that may be issued, to 1.55 million units.

Axis REIT closed up 1 sen or 0.3% to RM3.52, translating to a market capitalisation of RM1.93 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go for more details on a company's financial dashboard.)

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